Top 150+ Solved Macro Economics 1 MCQ Questions Answer

From 136 to 144 of 144

Q. In the Keynesian two sector model, when AD = AS, then:

a. s<i

b. s>i

c. s=i

d. i=0

  • c. s=i

Q. Which of the following is not correct:

a. mpc declines as income increases

b. mpc is positive but less than one

c. mps is always positive

d. all the above

  • c. mps is always positive

Q. According to Keynes, saving is:

a. private virtue but not social virtue

b. private and social virtue

c. is neither private virtue nor social virtue

d. is either social virtue or private virtue

  • a. private virtue but not social virtue

Q. MEC isinversely related to:

a. prospective yield

b. supply price

c. investment

d. rate of interest

  • a. prospective yield

Q. Keynes considered subjective and objective factors:

a. important determinants of consumption

b. unimportant determinants of consumption

c. determinants of investment

d. determinants of business’s willingness to pay

  • b. unimportant determinants of consumption

Q. Keynesian economics is:

a. macro

b. micro

c. both

d. none

  • a. macro

Q. The MEC increases when:

a. capitalstock increases

b. capitalstock decreases

c. capital remains constant

d. none of the above

  • b. capitalstock decreases

Q. Which of the following is correct?

a. 1+mps =mpc

b. 1- mpc =mps

c. mpc + mps >1

d. mpc+ mps<1

  • b. 1- mpc =mps
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